Legal Question in Business Law in California

Re: Starting up a company

They can be investors and silent partners in the business. You need to have an attorney draft contract to protect your interest at the same time to make sure all the legalities are met as to your sister and her spouse.

Re: Starting up a company

they can't be earning money outside of their visa classifications -- so whatever you do, you need to talk to an attorney -- not seek advice on a board where the questions and answers are publicly available.

Re: Starting up a company

Do not involve yourself in anything involving falsehoods. You could be arrested if the falsehoods were discovered, or you could have liability if the business were sued. Your relatives can surely find some other way to solve their problem.

Re: Starting up a company

I agree with the previous advice and would like to add a couple more thoughts:

There is a difference between investing (which doesn't usually involve visa considerations) and working, which usually does. People who can't work here legally can usually be owners of or investors in U.S. businesses so long as their involvement is genuinely passive.

The only other advice I can add is that aliens who don't have permanent resident status cannot be shareholders in "S" corporations, and for that reason many small businesses with alien owners should be set up as limited liability companies (LLCs) rather than as corporations.